These days we are subscribing to many utilities - internet, cable or OTT, credit cards, grocery apps, shopping apps and so on. So, it is easy to forget which bill is due on what date. However, missing out on timely bill payment results in penalties or fines and even leads to a dip in your credit score. If you never want to go through the hassles of late payments, we have some tips for you.
Here are three ways to never forget a bill payment again:
There are few good bill tracking apps that help you pay your bills on time. You can set reminders for due dates and even set up automatic payment instructions.
Several apps have smart features for bill payments. With these you’ll receive notifications when your bill payment is close to due date. You can also use some of these apps to set up automatic payments for recurring bills.
When using mobile apps to track finances, always choose trustworthy apps. This is because when it comes to bill payments, sometimes you might need to share vital information. Always use an app that has authority and that you can trust to keep your data safe.
Almost all banks offer standing instructions option. With this facility, you can tell the bank to automatically pay certain bills. If it is a credit card bill, you can choose to pay either the whole amount or the minimum due. Once you set the instructions, this will take place on its own without the need for you to make a payment every month.
The government has now allowed instructions to be set up through e-mandate which can be done online. You don’t need to go to the bank to fill out hand-written forms to set up standing instructions.
There is one more option like Standing Instructions - it is called Direct Debit. This option allows a customer to instruct the bank to let specific merchants automatically debit their account. For example, if you have opted to donate to a trust every month, you can set up a direct debit. So, every month, the trust can just debit the set amount directly from your account. This also works for SIPs, mutual funds and other investment options.
Apart from these three facilities, if you have the time, a good option would be to go old school and write it all down. Creating a written budget, or even making an excel sheet on your computer of the bills and due dates, can help you never miss a payment. But this option isn’t for those who are on a busy schedule.
Remember, missing out on utility and other bill payments might result in just a penalty. However, missing out on credit card due dates will result in more severe consequences such as a late payment fee, an increased interest rate and a report to the credit bureaus like CIBIL or Experian. This can lower your credit score and hamper your chances of getting a loan or credit card in the future.
So be alert when it comes to paying bills to avoid any extra fees. Whether you choose to use the latest technology or go old school with a handwritten schedule, it’s best to pay all your bills on time!
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